U.S. Seventh Competitive Nation, India Slips Low

Which is the world's most competitive economy? While India ranked 59 as per the Global Competitiveness Report by the World Economic Forum, U.S. ranked seventh. Three Asian economies also figured in top 10. The competitiveness was measured using 12 pillars, namely Institutions, Infrastructure, Macroeconomic environment, Health and primary education, Higher education and training, Goods market efficiency, Labor market efficiency, Financial market development, Technological readiness, Market size, Business sophistication and Innovation.


The most 10 most competitive nations as per the World Economic Forum report are:
India:



To begin with India, it ranks 59th on the Global Competitive Index report, down three places from last year. Once ahead of Brazil and South Africa, India now follows them by some 10 places and lags behind China by a margin of 30 positions. India continues to be punished for its disappointing performance in the areas considered to be the basic factors behind competitiveness. The country’s supply of transport, ICT are also low.

Switzerland:

Switzerland maintains its first position again this year on the Global Competitive Index report. The country’s most notable strengths are related to innovation and labor market efficiency, where it tops the rankings, along with the sophistication of its business sector, which is ranked second. The country’s scientific research institutions are among the world’s best, and the strong collaboration between its academic and business sectors, pooled with high company spending on R&D has kept Switzerland on top.

Singapore:

Singapore takes the second place. It features in the top 3 in seven of the 12 categories of the Index. Its public and private institutions are rated as the best in the world for five years now. It also ranks first for the efficiency of its goods and labor markets, and comes second in terms of financial market development. It has world-class infrastructure, with excellent roads, ports, and air transport facilities. In addition, Singapore’s competitiveness is armored with a strong focus on education, further leading to a steady improvement in the higher education and training pillar. Thus providing persons with the skills required for a rapidly changing global economy.

Finland:

Finland takes the third position on the list. The country possesses well-functioning and highly transparent public institutions (ranking 2nd). Its private institutions are ranked third overall, and are also seen to be among the best run and most ethical in the world. Finland takes the top position both in the health and primary education as well as the higher education and training. This has provided the workforce with the skills needed to adapt quickly to a changing environment and has laid the foundation for high levels of technological adoption and innovation. Finland is also one of the most innovativecountries in Europe.

Sweden:

Sweden takes the fourth position. “Like Switzerland, the country has been placing significant emphasis on creating the conditions for innovation-led growth. The quality of its public institutions remains first-rate, with a very high degree of efficiency, trust, and transparency,” the report stated. Private institutions also fare well, with firms that display excellent ethical behavior. However, over the past three years there has been a slight but steady decline in the country’s institutional framework. Additional strengths include goods and financial markets that are very capable.

Netherlands:

Netherlands takes the fifth place this year. The improvement reflects a continued strengthening of its innovative capacity along with the heightened efficiency and stability of its financial markets. Overall, Dutch businesses are highly sophisticated (raked 4th) and innovative (raked 9th), and the country is rapidly harnessing new technologies for productivity improvements. Its educational system ranked fifth for health and primary education and sixth for its higher education and training. Further, its efficient markets, especially its goods market are highly supportive of business activity. The quality of infrastructure in Netherlands is among the best in the world, reflecting excellent facilities for maritime, air, and railroad transport.

Germany:

Germany again takes the sixth place this year. The country is ranked third for the quality of its infrastructure, particularly first- rate facilities across all modes of transport. The goods market is quite efficient, exemplified by intense local competition. Germany’s business sector is very sophisticated and German companies are among the most innovative in the world, spending heavily on R&D. Further, the country displays a high capacity for innovation (3rd). Germany benefits greatly from its significant market size, which is based on both its large domestic market and its strong exports.

United States:

The U.S. declined two more positions to take the seventh place on this years list. U.S. companies are highly sophisticated and innovative, supported by an excellent university system that work together splendidly with the business sector in R&D. The business community in the country continues to be critical toward public and private institutions. Particularly, its trust in politicians is not strong (54th). Business leaders also stay concerned about the government’s ability to maintain liberal relationships with the private sector and consider that the government spends its resources relatively wastefully.

United Kingdom:

UK rose by two more places and took the eighth position this year. The report observed “a downward assessment of labor market efficiency (from 13th two years ago to 20th place this year), with the business sector perceiving the alignment between pay and productivity, hiring and firing practices, and brain drain less favorably than in previous years.”

Hong Kong SAR:

Hong Kong SAR took the ninth position on the list. As in previous years, Hong Kong tops in infrastructure, reflecting the outstanding quality of its facilities across all modes of transportation and its telephony and electricity infrastructure. Also, the economy’s financial markets reveal high efficiency and stability of the banking sector. Hong Kong’s goods market and labor market further contribute to the economy’s good overall positioning. However improvements in two important areas, higher education and innovation will be necessary. Although the quality of education in Hong Kong is good, participation remains below levels found in other advanced economies. But, Hong Kong’s innovative capacity remains constrained by the limited availability of scientists and engineers.

Japan:

Japan takes the tenth position on the list. The country continues to enjoy a major competitive edge in business sophistication and innovation, ranking well in these two pillars. Company spending on R&D remains high (2nd) and the country benefits from the availability of many scientists and engineers. Further, companies function at the highest end of the value chain, producing high-value-added goods and services. However, the country’s overall competitive performance continues to be pulled down by severe macroeconomic.